Nexen Responds to AER Suspension Order

August 29, 2015

As part of our Process Safety Management program, Nexen Energy ULC initiated an internal audit of our corporate pipeline integrity management system in early July 2015. This audit identified a number of non-compliances primarily related to documentation of maintenance activities.

On Tuesday, August 25, Nexen voluntarily self-disclosed all non-compliances to the Alberta Energy Regulator (AER), along with a schedule for an action plan. The AER issued a suspension order to Nexen with respect to the non-compliances on Friday, August 28.

As stated in our self-disclosure to the AER, Nexen considers regulatory compliance to be of the utmost importance in our operations, and we are committed to continuous improvement, regulatory compliance and cooperation with the AER.

Our top priority is the safety of our employees, the public and the environment. We are preparing to comply with the AER’s order as we work to compile the necessary information and documentation. We look forward to continuing to work with the AER to come to resolution on the issue.